In an announcement earlier this week, TransAlta Corporation signed a long-term agreement with Puget Sound Energy (PSE) to convert its Centralia Unit 2 facility from coal to natural gas-fired generation. The agreement will provide a fixed-price payment that provides PSE the exclusive right to the capacity, energy and ancillary service attributes of, as well as the dispatch rights to, the 700 MW facility.
“Our Centralia facility has a long history of providing reliable and affordable power in the Pacific Northwest region. We are pleased to extend the useful life of this asset and support the ongoing reliability needs of PSE and, by extension, its customers” said John Kousinioris, President and Chief Executive Officer.
Scheduled to cease coal operations at the end of this year, the company has experience with previous coal-to-gas conversions and will spend approximately $600 million to extend the useful life of the facility. The target commercial operation date for natural gas produced electricity is late 2028 and the facility will operate until the end of 2044 under the terms of the new agreement. TransAlta anticipates declaring a final investment decision after all required approvals are obtained in early 2027. The agreement is subject to regulatory approvals.
Learn more from TransAlta here: TransAlta Signs Long-Term Agreement for 700 MW at Centralia Facility Enabling Coal to Natural Gas Conversion – TransAlta